The Corporate Debtor was undergoing CIRP proceedings. The RP presented an order from the NCLAT (Company Appeal No. 135/2020) which was in the matter of Sushil Kumar Singh Vs. Shalini Choudhary and Ors. The NCLAT order stated that once CIRP is initiated and an IRP is appointed, the Corporate Debtor loses jurisdiction to enter into financial transactions. The NCLAT also addressed the timing of the public announcement, stating it was irrelevant compared to the date of a case against the Respondent and the subsequent loan agreement execution. Based on the NCLAT order, the NCLT set aside the CIRP proceedings, released the Corporate Debtor from CIRP, and discharged the RP. All pending IAs were rendered infructuous.

The Corporate Debtor was undergoing CIRP proceedings. The RP presented an order from the NCLAT (Company Appeal No. 135/2020) which was in the matter of Sushil Kumar Singh Vs. Shalini Choudhary and Ors. The NCLAT order stated that once CIRP is initiated and an IRP is appointed, the Corporate Debtor loses jurisdiction to enter into financial transactions. The NCLAT also addressed the timing of the public announcement, stating it was irrelevant compared to the date of a case against the Respondent and the subsequent loan agreement execution. Based on the NCLAT order, the NCLT set aside the CIRP proceedings, released the Corporate Debtor from CIRP, and discharged the RP. All pending IAs were rendered infructuous.